Pre-budget report- Chancellor to pay CTF top-ups to children at age seven

The Government has pledged to make additional payments into kids’ Child Trust Funds accounts when they reach age seven.In his pre-budget speech, the chancellor vowed to make an additional payment of 250 to children and 500 to the poorest kids. Eligibility will be measured in the same way as for the initial payment and the payment will be made automatically with no need to claim.The Chancellor estimates around 40 per cent of children will receive the higher payment. Providers F&C and Nationwide welcomed the move saying the additional payment will help drive interest in the product.AITC communications director Annabel Brodie-Smith says: “To achieve the maximum benefit the Child Trust Fund must be linked to financial education. Top ups at age seven would provide an ideal opportunity for children and their parents to learn about investing through hands on experience and would have wider long-term benefits than the monetary value.”

Recommended

We saw with surprise Skandia’s decision to move away from re-registration into their funds supermarket in favour of transfers, in the article headlined, Skandia planning to axe re-registration (Money Marketing, October 28). I wonder if advisers share two concerns that we have.First, since Skandia offers transfers as the only way to consolidate fund holdings, this […]

Nationwide’s housing forecast for 2005 says the average property price will rise by just 2 per cent as more realistic price expectations will act as a brake on the market. Predicted net mortgage lending for 2005 is £73bn from an expected £97bn in 2004.

Newsletter

Latest from Money Marketing

A High Court judge says the FCA can submit evidence in a case that could shape how Sipp misselling claims are handled in the future. In the case, which started today, lorry driver Russell Adams alleges Carey Pensions missold him a self-invested personal pension. Carey Pensions is accused of using unregulated introducers to invest Adams’s […]

Studies have found funds can be too big or too small to outperform, suggesting size does matter The assessment of whether to invest in a certain fund is a tricky business. Bearing in mind roughly 90 per cent of active funds do not beat their benchmarks over periods longer than 10 years, the odds are […]

The following sorry verse embodies procrastination on a whole new level: “Hello there, my name’s Phil; I rap like a small bear writing a will [diligently]; Estate-planning, ninja-whooping IHT; Shame I’m not as bizzie [urban affectation] with the RLP.” These words were penned in response to my father’s short verse sent to me, after the […]